eHealthInsurance.com Investor Relations – News Release

eHealth Post-Open Enrollment Report: Premiums Rise Most for Those Under Age 25; Average Family Premium Tops $1,100 Per Month

Unsubsidized families pay an average monthly premium for Obamacare
coverage that is $410 higher than the average mortgage payment

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Dec. 20, 2017--
Days after the close of Obamacare’s 2018 open enrollment period in 39
states, eHealth, Inc. (NASDAQ: EHTH) has published a snapshot of
national average premiums and shopping trends among individuals and
families selecting 2018 plans without government subsidies at eHealth.com.

Average 2018 premiums for unsubsidized individuals and families. (Graphic: Business Wire)

Average premiums for unsubsidized individuals and families increased
16 percent and 17 percent, respectively, between the 2017 and 2018
open enrollment periods.

Premiums rose most for people under the age of 25.

Families are paying average monthly premiums of more than $1,100 per
month.

Families bought gold policies at a higher rate than last year.

More than half of those signing up for coverage at eHealth did so in
the final week of the 2018 open enrollment period.

“Forty–three
percent of people buying coverage in the private health insurance
market do not qualify for government subsidies,” said eHealth CEO Scott
Flanders. “These people are bearing the heaviest cost burdens under
Obamacare, but they’re stepping up to the plate to buy health insurance
again for 2018, despite increased premiums. In fact, families that don’t
qualify for subsidies under the law were somewhat more likely to enroll
in more expensive gold plans for 2018 than they were in 2017.”

THE COST OF INDIVIDUAL AND FAMILY COVERAGE

Average monthly premiums

The average monthlypremium for individual coverage increased 16
percent between the 2017 and 2018 open enrollment periods, from $378 to
$440 per month ($5,280 annually).

The average premium for family coverage (two or more people) increased
17 percent for 2018, from $997 to $1,168 per month ($14,016 annually).

Individual

Family

2018

$440

$1,168

2017

$378

$997

INDIVIDUAL COVERAGE COSTS & TRENDS

Average monthly premiums by metal level

Between the 2017 and 2018 open enrollment periods, the average premium
for individual coverage increased by 16 percent for bronze plans, 19
percent for silver plans, and 17 percent for gold plans.

For 2018 coverage, the average monthly premium was 36 percent higher for
a gold plan than for a bronze plan, which is comparable to previous
years.

Catastrophic

Bronze

Silver

Gold

Platinum

2018

$206

$434

$498

$589

$709

2017

$173

$374

$418

$502

$575

Average monthly premiums by age band

Average premiums increased significantly for all age groups, but most
notably for children under age 18 (26 percent) and young adults age
18-24 (18 percent).

Individuals age 35-44 saw only a nine percent increase in average
premiums between the 2017 and 2018 open enrollment periods, a more
moderate change compared to the 19 percent increase the same age group
saw between the 2016 and 2017 open enrollment periods.

The average annual premium for individuals in the 25-34 age range was
$3,744, but $9,492 for those in the 55-64 age range.

Under age 18

Age 18-24

Age 25-34

Age 35-44

Age 45-54

Age 55-64

2018

$231

$257

$312

$395

$541

$791

2017

$184

$217

$283

$361

$478

$695

Distribution of metal plan selections for individuals

While there was no change in the percentage of bronze level plans
selected between the 2017 and 2018 open enrollment periods, three
percent fewer individuals selected silver plans, while two percent more
selected catastrophic plans. This may be due in part to premium
increases broadly targeted to silver plans in response to the cessation
of cost-sharing reduction payments by the Trump administration.

Catastrophic

Bronze

Silver

Gold

Platinum

2018

16%

42%

28%

11%

2%

2017

14%

42%

31%

10%

3%

FAMILY COSTS & TRENDS

Average monthly premiums by metal level

Families in the private insurance market that don’t qualify for
subsidies were hit particularly hard this year, with average premiums
($1,168) rising higher than the cost of the national average
monthly mortgage ($758/month).

The average premium for family coverage increased 17 percent for bronze
plans, 18 percent for silver plans, and 15 percent for gold plans in
2018.

Catastrophic

Bronze

Silver

Gold

Platinum

2018

$430

$1,056

$1,257

$1,435

$1,707

2017

$367

$903

$1,061

$1,252

$1,472

Distribution of metal plan selections for families

During the 2018 open enrollment period, five percent fewer families
selected silver plans at eHealth than during the 2017 open enrollment
period. This may be due in part to premium increases broadly targeted to
silver plans in response to the cessation of cost-sharing reduction
payments by the Trump administration.

Four percent more families selected gold plans during the 2018 open
enrollment period.

Catastrophic

Bronze

Silver

Gold

Platinum

2018

4%

47%

34%

14%

2%

2017

3%

46%

39%

10%

2%

A COMPRESSED OPEN ENROLLMENT PERIOD

Distribution of enrollments across the 2017 and 2018 open enrollment
periods

More than two-thirds (69 percent) of people who signed up for individual
and family health insurance at eHealth did so during the final third of
the 2018 open enrollment period. More than half (55 percent) did so
during the last week alone.

By comparison, the second third of the 2017 open enrollment period saw
the greatest number of enrollments. This difference is likely due to the
fact that the nationwide open enrollment period for 2018 coverage was
half as long as the previous year, ending on December 15 instead of
January 31.

First third

Second third

Final third

Last week only

2018

16%

15%

69%

55%

2017

22%

48%

30%

15%

See the methodology note below for more information on these calculations

It should be noted that catastrophic plans are only available to
consumers under age 30 and to certain others who may qualify for a
special exemption. Platinum plans are not broadly available in some
areas and the number of people purchasing platinum plans makes up a
small percentage of the those who selected plans at eHealth during the
2018 open enrollment period.

Plan prices shown are based on eHealth’s customer data for areas where
eHealth sells unsubsidized Obamacare-compliant major medical plans.
Actual plan prices vary by geographical area, age, and other factors. In
addition, the plans available in each state vary. The plans available
for purchase by unsubsidized customers on eHealth do not necessarily
reflect all plans that may be available in a particular area.
Percentages and dollars have been rounded to the nearest full percentage
point or dollar.

The 2017 open enrollment period ran from November 1, 2016 through
January 31, 2017. For the purposes of calculating the distribution of
enrollments, each month was taken to represent one third of the total
period. For the 2018 open enrollment period, the first third corresponds
to November 1-15, 2017; the second third to November 16-30, 2017; and
the final third to December 1-15, 2017.

About eHealth

eHealth, Inc. (NASDAQ: EHTH) owns eHealth.com, a leading private online
health insurance exchange where individuals, families and small
businesses can compare health insurance products from brand-name
insurers side by side and purchase and enroll in coverage online and
over the phone. eHealth offers thousands of individual, family and small
business health plans underwritten by many of the nation's leading
health insurance companies. eHealth (through its subsidiaries) is
licensed to sell health insurance in all 50 states and the District of
Columbia. eHealth also offers educational resources, exceptional
telephonic support, and powerful online and pharmacy-based tools to help
Medicare beneficiaries navigate Medicare health insurance options,
choose the right plan and enroll in select plans online or over the
phone through Medicare.com (www.Medicare.com),
eHealthMedicare.com (www.eHealthMedicare.com)
and PlanPrescriber.com (www.PlanPrescriber.com).